期刊
NORTH AMERICAN ACTUARIAL JOURNAL
卷 27, 期 2, 页码 303-321出版社
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/10920277.2022.2077220
关键词
-
PAYD insurance is an innovative and exciting insurance method that reduces premium paid by the policyholder and increases the overall utility derived from auto usage and wealth. It also incentivizes customers to drive less, thus improving overall social welfare.
Pay-as-you-drive (PAYD) insurance is an exciting innovation. We develop a dynamic model to study PAYD insurance from the policyholder's utility maximization perspective. We demonstrate that PAYD insurance does benefit the policyholder by reducing premium paid and increasing the total utility derived from auto usage and wealth. PAYD insurance may also improve overall social welfare by incentivizing customers to drive less. We illustrate that PAYD insurance is more efficient than fuel tax in reducing mileage due to the concavity relation of premium and driving distance. Finally, we derive a cut-off value of mileage below which policyholders who drive with traditional insurance should switch to a PAYD policy. Our research proposes a reliable theoretical framework, and confirms that PAYD insurance benefits both individual customers and society as a whole.
作者
我是这篇论文的作者
点击您的名字以认领此论文并将其添加到您的个人资料中。
推荐
暂无数据